Reborn Entrepreneurial Giant.

Chapter 48 Valuation Negotiation

Seeing Xiong Ge and Shen Nanpeng walk into Wan Heihei's office with relaxed expressions, Qu Li guessed that Zhou Shaoning had most likely agreed to join, but it was unknown why he didn't call him in advance.

"Zhou Shaoning speaks highly of you..."

"Maybe because I have a low starting point, everyone is more tolerant." Qu Li said modestly

"You are wrong. Your starting point is low and we will have stricter requirements on all aspects of you. After all, our money does not come from strong winds. We must be responsible to investors."

"That's good. I think what I am best at may be having a clearer understanding of the future. The direction I choose may not be the best, but at least the general direction will not be wrong. That is, your investment means that I am confident Let your investment make money, and whether you make more or less depends on the strength of your team.”

"Of course, if we didn't believe you, we wouldn't have come."

"So in order to be responsible to you, I will not give up my status as the actual controller in any form, nor will I give up my status as the controlling shareholder before going public. I want to make sure that any big boss who joins the company is my assistant and not Boss." Qu Li said seriously

"Mr. Qu misunderstood, we did not..." Xiong Ge wanted to explain

"It's not important. Actions speak louder than words. I believe that the purpose of everyone's investment in Wan Hei Hei is not to drive me away. If that is the case, it is better to start a new business. What I want to say is that Wan Hei Hei now needs top talents like Zhou Shaoning. I would even make the engineering team the most important asset of the company.

But whether e-commerce or branding, they need rationality, but more importantly, they need sensibility. Unless he allows himself to have an emotional side, it is almost impossible for me to let him become the CEO of the company. "Qu Li used this to make use of the topic and first determined Zhou Shaoning's status in the company.

Shen Nanpeng did not expect that Qu Li would have so many demands before he even started negotiating the price. He naturally saw some hidden meanings in them. No one could harm his position, but Qu Li did not seem to have any intention of being CEO and responsible for the company's specific details. affairs.He seems to have positioned himself very clearly as the company's major shareholder, actual controller, and direction guide, while everyone else is the specific executor.

"I think this is very good. It's impossible for them in science and engineering to know how to design a good-looking dress. Why is a dress that doesn't look good worth so much..." Xiong Ge

"Well, what are Zhou Shaoning's requirements and what are the conditions to join Wan Hei Hei?" Qu Li finally asked the question.

"He wants to buy more shares at a lower price!" Shen Nanpeng's words were concise and to the point. He did not give a specific number, which would probably be beyond Qu Li's tolerance.

"Lin Bing is responsible for solving technical problems. I need Mr. Zhou to be mainly responsible for technical management and coordination and cooperation of multiple departments within the company, or to directly become the company's COO. He can save Wan Hehei from making many detours, and can also attract more people." So many talented people joining us.”

"But UTStarcom does not have an excellent corporate culture, and internal strife is very serious; although Google's corporate culture is good, Mr. Zhou joined halfway...

I don’t know the inside story very well, so the conditions given are that up to 10% of the shares before financing can be purchased at a 5% discount on the first round of financing. If he wants to exit early in the future, I can buy it back at a discount of the market value at that time; Similarly, I also promised Lin Bing a minimum of 5% of the shares, and he can continue to purchase 5% at the first round of financing price.In addition, Tan Lijun, the first important employee of Wanhehei, can own up to [-]% of the shares through equity incentives..."

"I personally think that such conditions should be more appropriate. The sales of Wanhehei's three online stores will most likely exceed 2000 million this year, with a net profit margin of more than 15%. This does not include the phone bills we opened to attract traffic. and game point card recharge income." Qu Li explained his thoughts seriously, without any concealment.

Qu Li previously held 8% of Wanheihei's shares and Chen Danlin held 2%. Now the upper limit of the private placement plan for special talents is 25%. His shareholding ratio in Wanheihei will be reduced to 60%, and then he will have to introduce Venture capital may split 20% to 30%, so Qu Li’s shareholding ratio will be reduced to 42% to 48%.If Zhou Shaoning wants more, Qu Li is likely to lose control of the company.

"I will try to persuade him again. Now let's talk about the valuation that everyone is concerned about." Shen Nanpeng

"Do you want to see the specific financial report? I can promise that there is no fraud, but I can't guarantee whether it meets the standards."

"No need. The sales data of Wanhehei comes from the Taobao backend, and the cost issue comes from the purchasing contract. Even if there are discrepancies in the operating costs in the middle, the impact will not be big."

"According to your benchmark Inditex, the market value is less than 5 times its revenue."

"Ahem, I'm not stupid. If the price difference is too big, I will let the private banking team assigned to me by HSBC participate in the whole process of this financing plan."

"The joining of Lin Bing has been confirmed. How many times can his bonus increase the valuation? The development speed of Internet e-commerce far exceeds that of physical retail. How many times can it be increased?" Qu Li said calmly

"Do you have a private bank?" Shen Nanpeng was surprised.

“Are your funding sources legal?”

"It's all well documented. We started trading Toronto copper last year and it has risen many times this year."

"It's incredible. Are you not short of money now?"

"There is indeed no shortage. I didn't expect Lin Bing to join, and it also attracted Zhou Shaoning."

"Then do you want to raise funds this time?"

"Of course, I want to build a modern technology enterprise. I need your support, mature experience, and long-term competitive advantages." Qu Li said sincerely that funds are not the only condition for successful entrepreneurship.

"There are still three months left in this year. If you say sales revenue will exceed 2000 million, then we will calculate it based on 2000 million. Sequoia will give you a valuation of 2 million." Shen Nanpeng was decisive at the critical moment

If we refer to the valuation of listed companies, Wanhei Hei has a profit of 300 million a year, and a price-earnings ratio of 50 times is 1.5 million, which is still less than 2 million.

"IDG gives a valuation of US$3000 million." Xiong Ge is not bad either, US$3000 million is equivalent to 2.34 million soft sister coins.

"I agree with this valuation." Shen Nanpeng did not increase the price

"..." Qu Li was silent for a while, and everyone communicated for a long time to get to know each other better.

"This financing should be prioritized, right? 15% for one party, or 20% for both parties? No more. There may be two rounds before going public." Qu Li gave the conditions. Anyway, you can't have peace. Let alone want more than 20% of the shares.

"3500 million, I want 20% of the shares." Shen Nanpeng is full of courage

"It's not good for you. I'll also pay 3500 million US dollars." Xiong Ge was not to be outdone.

"At this price, no more, a single investor can get up to 15%." Qu Li accepted it as soon as it turned out to be good, leaving a hook.

"Let's go out and talk." Xiong Ge said to Shen Nanpeng

"That's what I meant." Shen Nanpeng agreed calmly and confidently.

Watching the two of them walk out, Qu Li breathed a sigh of relief. This was a battle over money, so cruel.Is Wanhehei worth 2.73 million softmei coins two years after its establishment?